Tax Holiday for SMEs in Rural Areas Extended to Five Years

The definition of small and medium enterprise (SME) has been broadened to include businesses that provide or render IT services and IT-enabled services. SMEs that are exclusively set up as agro-based industries in rural areas will now be eligible for a tax holiday for five years. The cap on business turnover to qualify as an SME has been increased from Rs. 250 million to Rs. 800 million.